More Budget Hotels Built in Indonesia as Demand Grows

A high demand for budget accommodations is pushing hotel operators to expand by building more low-cost facilities.

Publicly listed property developer PT Intiland Development plans to build 10 budget hotels this year while targeting to operate 60 low-cost hotels by 2016.

Intiland corporate secretary Theresia Rustandi said the company had seen an increased demand for budget hotels over the past few years.

“The increasing number of low-cost flights has boosted the demand for budget hotels. After spending their money on airplane tickets, people usually think twice about staying in a five-star hotel but also refuse to stay in a one-star hotel,” Theresia said as quoted by kontan.co.id.

“That’s why we’re focusing on building premium two-star hotels.”

Intiland plans to develop the budget hotels under the Whiz Hotel brand in Jakarta; Surabaya, East Java; Manado, North Sulawesi; and Pontianak, West Kalimantan.

Whiz Hotels in Bali and Balikpapan, East Kalimantan, are currently under construction.

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